Homework Answers
Ans: Option A
(Total assets will be overstated , total shareholders equity
Account receivable a/c.......... Dr $890
To Sales a/c. $890
Sales a/c. $890
Inventory a/c. $560
Profit. $330
(shareholders equity increases, assets reduces)
Option A
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Anchor Company sold merchandise with a cost of $560 to a customer for $890 on account....
TB MC Qu. 04-38 What type of account is the... Nhat type of account is the...
TB MC Qu. 04-38 What type of account is the... Nhat type of account is the Cost of Goods Sold account? Multiple Choice Contra asset Asset Liability Expense "BMC Qu. 04-51 Anchor Company sold merchandise with a cost... Anchor Company sold merchandise with a cost of $560 to a customer for $890 on account. Due to an error, this sale was never recorded in the accounting records. What effect will the failure to make the necessary entries have on the...
best answer explenation Problem A-I - Multiple Choice. Choose the best answer for each of the...
best answer explenation
Problem A-I - Multiple Choice. Choose the best answer for each of the following questions and enter the identifying letter in the space provided. 1. How does failure to record accrued revenue distort the financial reports? a. It understates revenue, net income, and current assets. b. It understates net income, stockholders' equity, and current liabilities. c. It overstates revenue, stockholders' equity, and current liabilities d. It understates current assets and overstates stockholders' equity. A contingent liability which...
11 Saved Help Save & Exit The following question is an Error Analysis question related to...
11 Saved Help Save & Exit The following question is an Error Analysis question related to the adjustment process. Please note: Do not overthink the scenario. Instead, deal only with the facts provided. The financial statement effects being requested in any given scenario are for the current period only. "The company will pay staff members next period for work performed in the current period. When recording the adjustment entry in the current period, the owner recorded the wages as if...
On June 1, 2020 the XYZ company received a $48,000 payment in advance from a customer....
On June 1, 2020 the XYZ company received a $48,000 payment in advance from a customer. The payment was for four months of services (4x $12,000 - $48,000) which XYZ will provide to the customer starting on June 1, 2020. On June 1, 2020 XYZ made the following entry in its accounting system. Cash 48,000 Uņearned Revenue 48,000 If XYZ has not made any other entry related to this advance payment, and on June 30, 2020 fails to make the...
Geronimo Company issued 20,000 shares of $1 par value common stock at $10 per share. Ms....
Geronimo Company issued 20,000 shares of $1 par value common stock at $10 per share. Ms. Elgin, the bookkeeper, recorded this transaction with a $200,000 debit to Cash and a $200,000 credit to Common Stock. As a result of this entry: Multiple Choice C ) total assets will be overstated. Additional Paid-In Capital will be understated. Oo oo total stockholders' equity will be understated. equity will be overstated.
4) Accrual-basis accounting means that transactions that change a companys financial statements are recorded in the...
4) Accrual-basis accounting means that transactions that change a companys financial statements are recorded in the periods in which the events occur: a. only if cash is exchanged b. even if cash was not exchanged c. only if cash is not exchanged 5) Interest of $600 has accrued on a note payable. What is the necessary adjusting entry to record this interest? Debit Credit If this adjustment is not made, the following are overstated, understated, or not impacted: Assets: Revenue:...
1. 2. 3. In 2018, Internal auditors discovered that Fay, Inc., had debited an expense account for the $3,900,000 cost...
1.
2.
3.
In 2018, Internal auditors discovered that Fay, Inc., had debited an expense account for the $3,900,000 cost of a machine purchased on January 1, 2015. The machine's useful life was expected to be 20 years with no residual value. Straight-line depreciation is used by Fay. The Journal entry to correct the error will include a credit to accumulated depreciation of Multiple Choice 0 $585.000 O $195,000 O $3.900.000 o $390,000 Berkshire Inc. uses a periodic Inventory system....
Unadjusted Financial Statements income Statement For the Year Ended December 31, 2017 Service revenue $70,600.00 Wages...
Unadjusted Financial Statements income Statement For the Year Ended December 31, 2017 Service revenue $70,600.00 Wages expense 44,300.00 Net income $26,300.00 Cole Designs Inc. Balance Sheet December 31, 2017 Assets Cash $5,000.00 Accounts receivable 32,600.00 Supplies 3,650.00 5 Prepaid insurance 4,000.00 6 Office equipment 11,000.00 Total assets $56,250.00 Liabilities Unearned revenue $9,500.00 Stockholders' Equity Common stock $12,000.00 12 Retained earnings 34,750.00 46,750.00 13 Total liabilities and stockholders'equity $56,250.00 Cole Designs Inc. Income Statement For the Year Ended December 31, 2017...
Multiple Choice: Accounting: a. measures business activities. b. processes data into reports and communicates the data...
Multiple Choice: Accounting: a. measures business activities. b. processes data into reports and communicates the data to decision makers. c. is often called the language of business. d. is all of the above. The accounting equation can be stated as: a. Assets + Liabilities - Stockholders' equity b. Assets = Liabilities + Stockholders' equity c. Assets = Liabilities - Stockholders' equity d. Assets + Stockholders' equity = Liabilities When services are performed on account: a. cash is increased. b. revenue...
MULTIPLE CHOICE AND TRUE/FALSE QUESTIONS (100 POINTS records, does not 1 . F. As Inventory is...
MULTIPLE CHOICE AND TRUE/FALSE QUESTIONS (100 POINTS records, does not 1 . F. As Inventory is sold in many retail businesses, the largest expense is created A business using the perpetual Inventory system with detailed subsidiary records, does need to a physical Inventory count. 5. T.F. A detective internal control is designed to find error or misstatement after loss has occurred. 4. T. F. Purchased goods shipped FOB shipping point should be excluded from inventory of the purchaser. 5. T....
TB MC Qu. 04-38 What type of account is the... Nhat type of account is the Cost of Goods Sold account? Multiple Choice Contra asset Asset Liability Expense "BMC Qu. 04-51 Anchor Company sold merchandise with a cost... Anchor Company sold merchandise with a cost of $560 to a customer for $890 on account. Due to an error, this sale was never recorded in the accounting records. What effect will the failure to make the necessary entries have on the...
best answer explenation
Problem A-I - Multiple Choice. Choose the best answer for each of the following questions and enter the identifying letter in the space provided. 1. How does failure to record accrued revenue distort the financial reports? a. It understates revenue, net income, and current assets. b. It understates net income, stockholders' equity, and current liabilities. c. It overstates revenue, stockholders' equity, and current liabilities d. It understates current assets and overstates stockholders' equity. A contingent liability which...
11 Saved Help Save & Exit The following question is an Error Analysis question related to the adjustment process. Please note: Do not overthink the scenario. Instead, deal only with the facts provided. The financial statement effects being requested in any given scenario are for the current period only. "The company will pay staff members next period for work performed in the current period. When recording the adjustment entry in the current period, the owner recorded the wages as if...
On June 1, 2020 the XYZ company received a $48,000 payment in advance from a customer. The payment was for four months of services (4x $12,000 - $48,000) which XYZ will provide to the customer starting on June 1, 2020. On June 1, 2020 XYZ made the following entry in its accounting system. Cash 48,000 Uņearned Revenue 48,000 If XYZ has not made any other entry related to this advance payment, and on June 30, 2020 fails to make the...
Geronimo Company issued 20,000 shares of $1 par value common stock at $10 per share. Ms. Elgin, the bookkeeper, recorded this transaction with a $200,000 debit to Cash and a $200,000 credit to Common Stock. As a result of this entry: Multiple Choice C ) total assets will be overstated. Additional Paid-In Capital will be understated. Oo oo total stockholders' equity will be understated. equity will be overstated.
4) Accrual-basis accounting means that transactions that change a companys financial statements are recorded in the periods in which the events occur: a. only if cash is exchanged b. even if cash was not exchanged c. only if cash is not exchanged 5) Interest of $600 has accrued on a note payable. What is the necessary adjusting entry to record this interest? Debit Credit If this adjustment is not made, the following are overstated, understated, or not impacted: Assets: Revenue:...
1.
2.
3.
In 2018, Internal auditors discovered that Fay, Inc., had debited an expense account for the $3,900,000 cost of a machine purchased on January 1, 2015. The machine's useful life was expected to be 20 years with no residual value. Straight-line depreciation is used by Fay. The Journal entry to correct the error will include a credit to accumulated depreciation of Multiple Choice 0 $585.000 O $195,000 O $3.900.000 o $390,000 Berkshire Inc. uses a periodic Inventory system....
Unadjusted Financial Statements income Statement For the Year Ended December 31, 2017 Service revenue $70,600.00 Wages expense 44,300.00 Net income $26,300.00 Cole Designs Inc. Balance Sheet December 31, 2017 Assets Cash $5,000.00 Accounts receivable 32,600.00 Supplies 3,650.00 5 Prepaid insurance 4,000.00 6 Office equipment 11,000.00 Total assets $56,250.00 Liabilities Unearned revenue $9,500.00 Stockholders' Equity Common stock $12,000.00 12 Retained earnings 34,750.00 46,750.00 13 Total liabilities and stockholders'equity $56,250.00 Cole Designs Inc. Income Statement For the Year Ended December 31, 2017...
Multiple Choice: Accounting: a. measures business activities. b. processes data into reports and communicates the data to decision makers. c. is often called the language of business. d. is all of the above. The accounting equation can be stated as: a. Assets + Liabilities - Stockholders' equity b. Assets = Liabilities + Stockholders' equity c. Assets = Liabilities - Stockholders' equity d. Assets + Stockholders' equity = Liabilities When services are performed on account: a. cash is increased. b. revenue...
MULTIPLE CHOICE AND TRUE/FALSE QUESTIONS (100 POINTS records, does not 1 . F. As Inventory is sold in many retail businesses, the largest expense is created A business using the perpetual Inventory system with detailed subsidiary records, does need to a physical Inventory count. 5. T.F. A detective internal control is designed to find error or misstatement after loss has occurred. 4. T. F. Purchased goods shipped FOB shipping point should be excluded from inventory of the purchaser. 5. T....
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